Are you going to get a loan? If you are wondering what loan option you must have, this post is going to help you. In this post, we will discuss the basics of home and personal loans, and then we will examine the differences between them. Read the full write-up carefully to know about them and decide which is apt for you.
Getting loans is not much difficult now. Multiple credit companies are there that can get you loans. You need to apply for a loan, and then the financial institutions will decide which loan is best for you. Loan amounts can vary for individual loans.
In short, if you need a large amount, you should choose a secure loan like a home loan. For small amounts, unsecured loans like personal loans will do fine. You must look for expert advice to know more about them.
How To Apply for A Loan?
1. Personal Loans
Although the process of applying for a loan is almost the same, there are some differences. If you want to have a personal loan, here are the steps you must follow-
- As the personal loan is unsecured, you need a good credit score.
- You can apply for a personal loan along with all of your credentials.
- You need to sign the documents presented by the bank to get the loan amount.
- The bank will check your documents thoroughly and let you know their decision.
- You will receive the amount if your loan is approved in no time.
2. Home Loans
You need to go through a more profound structure to get a home loan. Most people apply for a home loan to buy land or housing property. According to the law, the banks will offer you a maximum of eighty per cent of the total valuation of your property. If you attach security, banks feel confident about getting you the loan.
After receiving the loan, it can take some time to approve your loan. If you have submitted everything properly, they will eventually approve your loan. ICICI bank home loan is one of the hugely popular home loans available in the market. Get in touch with a professional to know more.
Differences Between a Home Loan and a Personal Loan
As we have already discussed the basics of home and personal loans, here are some differences between them. Read carefully-
- Interest rates on both loans are not the same. Most banks offer a comparatively low-interest rate on home loans than personal loans.
- The application process of getting a home loan is more complex than personal loans.
- A personal loan is an unsecured loan. You don’t need to attach any security to it. You may need to attach some security for secured loans like home loans.
- Both loans offer you an EMI option to pay back your debt. If you don’t pay the amount in time, banks will impose penalties and interest payments on your pending debt.
- You can use the EMI calculator provided by banks, credit companies or other financial institutions to get an idea about probable instalments.
We have tried to make you understand the basics of home and personal loans and how to apply for a loan. Read the full write-up to know the difference between them and the benefits of having them.